1,200 jobs to go at HSBC

BANKING giant HSBC today said 1,200 UK jobs were under threat following a review of the business. The firm, which has around 58,000 staff in the UK, said the cuts would hit backroom areas such as IT and human resources, rather than front-line employees in branches.

Mr Thurston said the bank `deeply regretted' the move, adding: "As you would expect, we will do everything we can to help and support those of our colleagues who are affected."

But he also warned of the turbulent road ahead for the banking sector following last year's near-meltdown.

"The operating environment for banks in the UK is extremely challenging and will remain so for some time," he said.

As one of the world's strongest banks, HSBC has not needed to call on support from the British taxpayer so far, unlike struggling rivals Lloyds Banking Group and Royal Bank of Scotland .

But earlier this month, the bank called on investors for a UK record £12.5bn in cash to shore up its balance sheet, after heavy losses in the US.

Its pre-tax profits slid to £6.5bn in 2008, and it also announced plans to wind down its US consumer lending business, in a humiliating reversal of strategy. HSBC spent £10.7bn on the Household business in 2003, but the withdrawal will cost 6,100 jobs.

Unite claimed that 2,900 jobs will be axed at HSBC, including 500 posts being offshored to India. The union said a number of local communities would be `ravaged' as `premier' customers will be serviced from centres in the UK, while basic and other account holders will be covered from India.

INSURANCE giant Legal & General said today around 10 per cent of its life and pensions workforce would go this year as it reported a £1.5bn annual loss.

L&G said the UK job cuts - out of a 6,500-strong division - would mirror similar levels last year, when it cut its headcount by 10 per cent. It said the figure included 450 job losses announced last month.